Tax Season Preparation: Top FAQ’s about 1099 Forms

Top FAQ’s about 1099 Forms

Phil Puccio

Form 1099-NEC is due on or before February 1, 2021, whether it is paper or electronically filed.  Form 1099-MISC must be filed by March 1, 2021, for paper filers, or March 31st if you are filing electronically.

There are various types of 1099, but for property managers Propertyware has allowed you to print Form 1099-MISC. For the 2020 tax year, the 1099-MISC is only used for Owner 1099s. The IRS has introduced a new Form 1099-NEC to report nonemployee compensation for Vendor 1099s.

Its primary purpose is to show the amount you’ve paid to owners and contractors or service providers over the course of the year, so the IRS can match the income they report to the total amount reported by companies that paid them. You submit one copy of the form to the IRS and another to the owner or vendor.

Your Propertyware software can populate these forms for you, potentially saving you a great deal of time during tax season.

Check out the top four questions about how to correctly complete your 1099’s! Then download a full list of FAQs.

1. Where in Propertyware can I print my 1099’s?

1099’s are available for print in Propertyware:

Vendor 1099’s

  • Money Out >  Related Activities > Print Vendor 1099’s / Print Vendor 1096

Owner 1099’s

  • Management > Related Activities > Print Owner 1099’s / Print Owner 1096

Get more information about generating 1099’s in Propertyware.

2. With a new 1099-NEC form, does that mean I need to order two different forms to print?

Yes. Propertyware will print the correct data on the IRS form in the proper placement on the form but it will require that you purchase both the 1099-MISC and the 1099-NEC to be loaded into your printer.

3. Can I file my 1099s electronically?

You can generate a 1099 eFile Export and save it to your computer. Then submit the saved filed outside Propertyware to the IRS. This functionality  is available under Money out and Management. Electronic filing is required if you have 250 or more 1099 forms to report but you can file electronically even with fewer 1099 forms.

Vendor 1099’s

  • Money Out >  Related Activities > Print Vendor 1099’s

Owner 1099’s

  • Management > Related Activities > Print Owner 1099’s

Important: Clicking the Generate 1099 EFILE Export button does not automatically send the file to the IRS. It must be saved to your computer and submitted outside of Propertyware to the IRS.

Propertyware provides the necessary file to complete electronic filing for your vendors and owners.

Get more information on 1099 e-filing.

Check out other helpful tips from the IRS.

4. What reports can I run to validate my 1099’s?

In Propertyware you can review various reports for monies paid:

Finance Reports

  • Owner 1099s – 1099 reports can also be a quick view to see if a Tax ID number, mailing address or other specific contact info is missing.
  • Vendor 1099s
  • Money Out – Bill Payments
  • Money Out – Checks

Financial Statements Reports

  • General Ledger report – Filter out any accounts that are set to “Exclude From 1099” but be sure to include discount and adjustments.

You can also go to Money Out and review the Vendor Ledger for payments made during the calendar year. For owners, remember that it is what was actually earned during the tax year and not what was paid out in owner draws that must be reported.

For a full list of 1099 FAQ’s,

**Please note that this blog article, and its contents, is being provided for informational purposes only.  It does not constitute legal, tax or accounting advice and should not be used or relied upon as a substitute for such advice.  You should consult with a qualified professional for any legal, tax or accounting-related questions you have relating to the subject matter.**

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